The recent strategic announcements from Toyota and Maruti Suzuki mark the most significant supply-side shift in India’s auto sector in years. Both companies—already deeply linked through product sharing, technology exchange, and electrification strategies—are now doubling down on India as a long-term manufacturing hub.

Their parallel yet complementary decisions signal three major structural shifts: India’s rising importance in global automotive supply chains, the pivot toward future-ready platforms, and an attempt to stabilize costs amid global supply volatility.

Sources: Reuters  Read The Article    Read the Article

Toyota’s New Assembly Plants: Capacity + Localization Strategy
Toyota’s reported plan to set up three new assembly plants in Maharashtra is a bold capacity bet. For an OEM traditionally conservative in scaling Indian operations, this marks a new phase—one driven by three forces:

1. Localization of hybrid technology. Toyota’s hybrid portfolio is constrained by import dependence on high-value components. New plants provide room to deepen localization of motors, power electronics, and battery packs.
2. Export Hub Potential. Toyota globally is under margin pressure in developed markets. India’s low-cost base makes it ideal for exporting compact SUVs and MPVs to Southeast Asia, Africa, and Latin America.
3. De-risking from geopolitical supply shocks. Recent Middle-East disruptions have raised freight and input costs. Higher India localization reduces vulnerability to global shocks.

Maruti Suzuki’s ₹12,000+ crore Capacity Expansion: A Volume Play
Maruti Suzuki’s US$1.48 billion capex plan (₹12,000 crore) for new capacity is designed to reinforce its position as India’s small-car specialist while preparing for hybrid and flex-fuel transitions. Key structural drivers here are:

1. Small-car demand consolidation. Even though the small-car segment stagnates overall, Maruti still dominates >65% of this space. Additional capacity helps maintain cost leadership through economies of scale.
2. Hybrid and CNG scale-up. Maruti’s strategy is not pure EV. They are betting big on strong-hybrid, CNG, and future ethanol blends—segments where scale dramatically improves margins.
3. Shared product pipeline with Toyota. More capacity strengthens cross-badging economics for the two companies, reducing per-unit costs and enabling faster rollouts.

Industry-Level Impact: Why This Matters

1. Cost Structure Reset. More localization means lower import bills for batteries, motors, and electronics—eventually softening prices for hybrids and CNG cars.
2. Competitive Pressure on Hyundai-Kia, Tata Motors. Tata dominates EVs; Hyundai-Kia dominates SUVs. Toyota-Maruti’s capacity surge signals an aggressive comeback in hybrids and CNG SUVs.
3. Supplier Ecosystem Growth. Tier-1 and Tier-2 suppliers will see new opportunities in electronics, castings, plastics, and battery components.
4. Export Growth. If Toyota uses India as a regional export base, it lifts India’s status as a global automotive hub.

Bottom Line. Toyota’s capacity build and Maruti Suzuki’s mega investment are not routine expansions—they represent a strategic reset. Together, they are shaping India into a central node for hybrid, CNG, and next-generation compact vehicle manufacturing, with long-term repercussions for the domestic and global auto landscape. PSR

Aditya Kondejkar is Research Analyst – South Asia Operations for Power Systems Research

The evolving automotive relationship between India and Indonesia is increasingly defined by structured, government-linked procurement and industrial collaboration rather than routine export activity. Recent transactions involving Tata Motors, Mahindra & Mahindra, and Ashok Leyland signal a measurable expansion of India’s commercial vehicle footprint in Southeast Asia’s largest economy.

Indonesia’s infrastructure expansion, rural logistics formalization, and cooperative-based distribution programs have generated concentrated demand for light and medium commercial vehicles. Unlike fragmented retail-driven sales, these programs are characterized by bulk institutional procurement, creating predictable order pipelines and scale efficiencies for suppliers. Indian manufacturers, with established competencies in cost-optimized, durable vehicle platforms suited to emerging market operating conditions, have been able to secure sizeable allocations.

Tata Motors’ agreement to supply 70,000 commercial vehicles to Indonesia represents one of the largest single-country export orders for the company’s commercial vehicle division. The order mix—comprising pick-ups and intermediate trucks—aligns with rural aggregation, first-mile logistics, and small-enterprise mobility requirements. For Tata Motors, the transaction improves export volume visibility and supports capacity utilization at a time when domestic demand remains cyclical. It also strengthens the company’s ASEAN exposure, a region historically dominated by Japanese OEMs with entrenched distribution ecosystems.

Mahindra & Mahindra’s confirmed export of 35,000 Scorpio Pik-Up units further reinforces India’s competitive positioning in light commercial vehicles. The scale of the order is significant in the context of Mahindra’s annual export volumes and reflects Indonesia’s preference for mechanically robust, serviceable platforms. For Mahindra, the contract provides near-term revenue assurance and export diversification beyond traditional African and South Asian markets. It also underscores the commercial viability of leveraging existing platforms for overseas institutional demand without substantial incremental R&D expenditure.

Beyond direct vehicle supply, the engagement is extending into industrial collaboration. Ashok Leyland’s memorandum of understanding with Indonesia’s state-owned defense manufacturer PT Pindad reflects a more structural shift. The partnership focuses on joint development of electric buses and specialized defense mobility platforms, potentially involving localization and technology transfer components. If executed at scale, such arrangements could transition the bilateral relationship from pure trade flows to co-manufacturing and value-added integration.

From a financial standpoint, these developments improve export-to-domestic revenue ratios for Indian OEMs, reducing concentration risk. Institutional orders also enhance working capital planning due to defined delivery schedules and clearer payment frameworks compared to retail markets. However, margin profiles will depend on localization levels, logistics costs, and currency exposure. Sustained competitiveness will require efficient after-sales networks and parts distribution within Indonesia to protect lifecycle economics.

The broader competitive landscape remains challenging. Japanese manufacturers continue to dominate Indonesia’s passenger and commercial vehicle segments, supported by long-standing production bases and supply chain integration. Chinese OEMs are also expanding aggressively, particularly in electric mobility. Indian manufacturers must therefore balance price competitiveness with compliance, service infrastructure development, and potential local assembly commitments to maintain order continuity.

For Indonesia, diversification of vehicle sourcing reduces supplier concentration risk and introduces cost-efficient alternatives into public and cooperative programs. For India, Indonesia offers scale in a geographically strategic ASEAN market with expanding logistics formalization and electrification ambitions.

Source:  The Hindu   Read The Article  

Overall, the recent wave of transactions suggests that India–Indonesia automotive ties are moving toward structured, program-linked engagement with increasing industrial depth. The sustainability of this trajectory will depend on execution discipline, localization strategies, and the ability of Indian OEMs to convert initial bulk orders into recurring institutional relationships.  PSR

Aditya Kondejkar is Research Analyst – South Asia Operations for Power Systems Research

The New Energy and Industrial Technology Development Organization (NEDO), Kawasaki Heavy Industries, Yanmar Power Solutions, and Japan Engine Corporation have announced the installation of new liquefied hydrogen fuel supply equipment for demonstration purposes, as well as the start of land-based operation of marine hydrogen engines.

This is part of a project commissioned by NEDO’s Green Innovation Fund/Next-Generation Ship Development Project. Three purely domestic engine manufacturers have formed a consortium: Kawasaki Heavy Industries, Yanmar Power Solutions, and Japan Engine.

As part of the consortium’s research and development (R&D) structure, the three companies will each develop marine hydrogen engines for ships with different cruising ranges. Kawasaki Heavy Industries will develop the Marine Hydrogen Fuel System (MHFS), which consists of a marine hydrogen fuel tank and fuel supply system, to supply hydrogen fuel to the marine hydrogen engines.

Furthermore, HyEng, which is jointly funded by the three companies, is conducting joint research on common challenges in marine hydrogen engine development and manages shared facilities. Nippon Kaiji Kyokai (ClassNK) is cooperating on ship classification approval, and Iwatani Corporation is assisting with the supply of liquefied hydrogen.

Kawasaki Heavy Industries marine hydrogen engine targets small to large domestic vessels. Its single-unit output ranges from 2 to 8 MW, and up to 30 MW with multiple units installed. Development goals include achieving an average effective pressure of at least 1,600 kPa and an onshore test shaft-end output of at least 2,600 kW. The hydrogen blend ratio is 99.9% by volume and 95% or higher by heat content. A key feature of the development engine is its three EGR (exhaust gas recirculation) systems, which handle the steep combustion characteristics inherent to hydrogen engines.

Yanmar Power Solutions is developing two models based on marine diesel engine technology: an 800 kW medium-speed hydrogen engine that supports dual-fuel operation (hydrogen/diesel) and a 1,400 kW high-speed hydrogen engine designed for pure hydrogen combustion.

While Kawasaki Heavy Industries and Yanmar Power Solutions’ marine hydrogen engines are four-stroke, Japan Engine’s engine targets a high output exceeding 5,000 kW per unit and is a low-speed, two-stroke engine that utilizes high-pressure direct injection.

For the three companies’ actual ship demonstrations of their marine hydrogen engines, it is also necessary to develop MHFS units scaled to the size of the vessels. The MHFS currently used in land-based demonstration tests is a medium-sized unit for Kawasaki Heavy Industries’ marine hydrogen engine. Going forward, development will proceed on a small MHFS for Yanmar Power Solutions and a larger MHFS for Japan Engine.

Source: NEDO

PSR Analysis: Kawasaki Heavy Industries, Yanmar Power Technology, and J-ENG have made a significant demonstration by integrating liquefied hydrogen supply equipment and marine hydrogen engines with the support of the GI (Green Innovation) Fund.

Previous discussions about hydrogen fuel ships focused solely on the engine or individual technologies. However, this project established a continuous system that covers everything from liquefied hydrogen supply to engine fuel supply and operation.

This demonstrates progress beyond merely proving the technical feasibility of hydrogen-fueled ships, reaching the level of operational viability. Liquefied hydrogen is notoriously difficult to handle, and integrating the fuel supply equipment with the engine was considered the greatest barrier. The fact that this bottleneck was overcome as a complete system is likely to be highly regarded internationally. Although the testing was conducted on land, operating the engine under conditions that simulate actual operation is a crucial milestone toward future installation on real ships. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, at Power Systems Research

Dongfeng Motor Group reportedly plans to sell its 50% stake in Dongfeng Honda Engine Co., Ltd. Joint venture with Honda Motor Co., according to an Aug. 18post on the official website of Guangdong United Property and Equity Exchange. The project is in the pre-listing phase, with no reserve price set, and the deadline is Sept. 12.

According to the audited figures in the listing documents, Dongfeng Honda Engine was valued at RMB 5.4 billion (approximately USD 752 million) in 2024. The company posted a net loss of RMB 227.8 million for the same period, carries liabilities of RMB 3.3 billion.

According to the official website of Dongfeng Honda Engine Co., Ltd., the company was established in 1998. Its shareholders are Dongfeng Motor Corporation, Honda Motor Co., Ltd., and Honda Motor (China) Investment Co., Ltd., holding 50%, 40%, and 10% of the shares respectively.

Headquartered in Guangzhou, the company is mainly responsible for the development, production, and sale of automobile engines and their components for passenger cars and provides corresponding after-sales services. Its products are primarily supplied by the passenger-vehicle model manufactured by GAC Honda. At present, the company has an annual production capacity of 480,000 complete engines and over 650,000 sets of parts and components.

Dongfeng Motor Group’s plan to divest its engine business underscores how fierce competition has become amid China’s rapid shift toward electric vehicles. Japanese automakers—including Honda, Toyota, and Nissan—have lagged in electrification and are now confronting strong headwinds from domestic brands such as BYD.

Competition among China’s home-grown automakers is also intensifying. Data from the China Automotive Technology & Research Center show that Dongfeng Motor, which operates joint ventures with both Honda and Nissan, saw its annual deliveries fall from a peak of 3.8 million units in 2016 to 1.5 million units last year.

Source: GASGOO     Read The Article

PSR Analysis: Dongfeng’s sale of its stake in Dongfeng Honda Engine is a textbook case of “off-loading fossil-fuel assets and shifting capital into new-energy vehicles.” By divesting the engine plant, Dongfeng is restructuring its portfolio: it sheds a loss-making, high-debt fossil-fuel asset, pockets a lump-sum cash inflow, lowers its leverage, and channels the freed-up resources into its EV and self-owned passenger-car businesses. 

Since 2024, China’s new-energy passenger-vehicle penetration rate has exceeded 50% for six consecutive months, while retail sales of traditional-fuel vehicles have been falling by roughly 15% per year. DHEC’s sole vehicle customer—GAC Honda—sold only 171,000 units from January to July 2025, down 29% year-on-year, and its parent, Honda Motor China, delivered 360,000 vehicles in the same period, a 23% decline. This shrinking demand has directly eroded DHEC’s engine orders and compressed its capacity utilization.

The surge of domestic new-energy vehicles has pushed joint-venture fuel-car sales and profits into a simultaneous decline; some players are now bleeding cash at an accelerating pace. With China VI emission rules tightening, any further investment in conventional powertrain capacity offers dismal returns. Consequently, several major joint ventures—including Nissan, Honda, General Motors, and SAIC Volkswagen—have announced plans to cut output or shrink capacity, and the scale of these reductions is still expanding.   PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

China National Heavy Duty Truck Group and Toyota Motor Corporation signed a strategic cooperation agreement on April 25, at Toyota’s headquarters in Nagoya, Japan.

Toyota Motor Corporation possesses world-leading hydrogen fuel cell technology, and China National Heavy Duty Truck Group is a leading enterprise in China’s commercial vehicle industry. The hydrogen fuel cell tractor jointly developed by the two parties has already been delivered to the market in batches. In the future, the two sides will establish more extensive cooperation in the fields of cooperative research and development, demonstration and operation, promotion and application, and business model innovation of hydrogen fuel commercial vehicles, and work together to create a new ecosystem for the zero-carbon logistics industry chain.

Source: CNHTC     Read The Article

PSR Analysis. Toyota possesses world-leading hydrogen fuel cell technology, while China National Heavy Duty Truck Group is a leading enterprise in China’s commercial vehicle industry. The hydrogen fuel cell tractors jointly developed by the two parties have already been delivered to the market in batches. This kind of cooperation can combine Toyota’s technological advantages with China National Heavy Duty Truck Group’s market and manufacturing capabilities, accelerating the optimization and innovation of hydrogen fuel cell technology.

The cooperation between Toyota and China National Heavy Duty Truck Group may form a complete hydrogen energy industry chain. For example, the inauguration of Toyota’s dedicated fuel cell research and production plant in Beijing marks the entry into a new phase of the fuel cell project jointly promoted by Toyota and its Chinese local partners. This kind of industrial synergy will help enhance the overall competitiveness of the hydrogen energy industry and promote its rapid development

This year, three hydrogen energy corridors are planned to be put into operation, covering major arteries such as the Beijing-Shanghai, Guangzhou-Shenzhen, and Chengdu-Chongqing routes. After scaling up, the cost of fuel cell systems is expected to decrease by 60% compared to 2020. At the same time, it is also observed that infrastructure needs to be developed in tandem. Currently, 60% of the cost of hydrogen comes from green hydrogen production using renewable electricity, and there is a need to further reduce electricity prices. Additionally, there are only 300 hydrogen refueling stations nationwide, with a target of 1,000 stations by the end of 2025. The construction of hydrogen refueling stations requires substantial financial investment. The government may include hydrogen-powered heavy-duty trucks in its purchase subsidy program for new energy vehicles. The implementation progress of these measures will largely determine the development trajectory of hydrogen energy heavy-duty trucks.  PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

Yuchai and XCMG have signed an agreement to jointly build and share new channels for overseas development and embark on a new chapter of cooperation in the Eurasian region.

The agreement stipulates that Yuchai and XCMG will establish Yuchai Service Stations and Yuchai Service Training Centers in the Eurasian region to provide technical training and corresponding technical support for XCMG’s local dealers and customers. Yuchai also authorizes XCMG as its spare parts dealer in the Eurasian region. In addition, the two parties will jointly carry out the Blue Ocean Action brand promotion activities in the Eurasian market to enhance their international brand influence.

It is reported that XCMG, which sells construction machinery and tractors equipped with Yuchai engines in the Eurasian region, is one of Yuchai’s core OEMs in the area. After the signing of this strategic agreement, the two sides will further deepen their cooperation and promote the high-quality development of their overseas expansion strategies.

Source: HCZYW    Read The Article

PSR Analysis: In 2024, both Yuchai International and XCMG Construction Machinery achieved remarkable growth in their overseas market revenues. Yuchai International’s total revenue reached $2.665 billion USD (19.134 billion yuan) by December 31, 2024, with a year-on-year increase of 6.02%, and its net profit attributable to shareholders grew by 13.15% to $44.98 million USD (323 million yuan). The company’s overseas market revenue surged by over 42%, with products exported to more than 180 countries and regions.

Notably, a power generation project in the Middle East, involving 153 generator sets, marked the largest single overseas export order for power generation that year. Additionally, the joint venture between Yuchai International and MTU sold approximately 700 diesel generator sets in 2024, successfully turning the business around from losses to profits.

XCMG Construction Machinery also saw robust overseas performance, with an overseas market revenue of $5.81 billion US dollars (41.687 billion yuan) in 2024, representing a year-on-year increase of 12.00% and accounting for 45.48% of its total annual operating revenue. In the first quarter of 2025, this revenue continued to grow, reaching $3.049 billion USD (21.9 billion yuan), up by 4.8% year-on-year.

To drive this growth, XCMG has focused on in-depth localization operations, establishing an integrated global development model that includes export trade, greenfield investments, cross-border mergers and acquisitions, and global R&D.

The company has also emphasized the development and promotion of high-end and new energy products, with revenues from these segments growing by more than 10% and 26.76% year-on-year, respectively. XCMG’s products are exported to over 190 countries and regions, covering more than 95% of the Belt and Road countries and regions, supported by a global network of over 40 subsidiaries and 2,000 service and spare parts outlets.

Building on these successes, Yuchai and XCMG have signed an International Strategic Cooperation Agreement to further expand their global presence. This partnership will combine Yuchai’s strengths in power solutions and XCMG’s extensive global network and localization capabilities, aiming to enhance market share and drive sustainable growth in international markets.  PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

Last month, China National Heavy Duty Truck Group and Toyota Motor Corporation signed a strategic cooperation agreement to develop hydrogen powered commercial vehicles.

China is a market with great potential for the promotion and popularization of hydrogen energy, and long-haul heavy-duty logistics vehicles are an important application scenario that highly matches hydrogen energy.

Toyota Motor Corporation possesses world-leading hydrogen fuel cell technology, and China National Heavy Duty Truck Group is a leading enterprise in China’s commercial vehicle industry. The hydrogen fuel cell tractor jointly developed by the two parties has already been delivered to the market in batches.

In the future, the two sides will establish more extensive cooperation in the fields of cooperative research and development, demonstration and operation, promotion and application, and business model innovation of hydrogen fuel commercial vehicles, and work together to create a new ecosystem for the zero-carbon logistics industry chain.

Source: CNHTC    Read The Article

PSR Analysis: Toyota possesses world-leading hydrogen fuel cell technology, while China National Heavy Duty Truck Group is a leading enterprise in China’s commercial vehicle industry. The hydrogen fuel cell tractors jointly developed by the two parties have already been delivered to the market in batches. This kind of cooperation can combine Toyota’s technological advantages with China National Heavy Duty Truck Group’s market and manufacturing capabilities, accelerating the optimization and innovation of hydrogen fuel cell technology.

The cooperation between Toyota and China National Heavy Duty Truck Group will drive the coordinated development of upstream and downstream enterprises, forming a complete hydrogen energy industry chain. For example, the inauguration of Toyota’s dedicated fuel cell research and production plant in Beijing marks the entry into a new phase of the fuel cell project jointly promoted by Toyota and its Chinese local partners. This kind of industrial synergy will help enhance the overall competitiveness of the hydrogen energy industry and promote its rapid development

By 2025, three hydrogen energy corridors are planned to be put into operation, covering major arteries such as the Beijing-Shanghai, Guangzhou-Shenzhen, and Chengdu-Chongqing routes. After scaling up, the cost of fuel cell systems is expected to decrease by 60% compared to 2020.

At the same time, it is also observed that infrastructure needs to be developed in tandem. Currently, 60% of the cost of hydrogen comes from green hydrogen production using renewable electricity, and there is a need to further reduce electricity prices.

Additionally, there are only 300 hydrogen refueling stations nationwide, with a target of 1,000 stations by 2025. The construction of hydrogen refueling stations requires substantial financial investment. The government is advised to include hydrogen-powered heavy-duty trucks in the purchase subsidy program for new energy vehicles. The implementation progress of these measures will largely determine the development trajectory of hydrogen energy heavy-duty trucks.   PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) officially announced that it would implement a strategic reorganization of the three state-owned automotive enterprises—FAW Group, Dongfeng Motor, and Changan Automobile. The goal is to “build a world-class automotive group with global competitiveness, independent core technologies, and the ability to lead the transformation of intelligent and connected vehicles.”

The combined annual production capacity of the three central state-owned enterprises exceeds 8 million vehicles, yet the market share of their owned brands is less than 15%. The fragmented R&D investment has led to low efficiency in technological advances. After the reorganization, technological synergy will become a core focus. For example, a joint innovation consortium will be established in 28 “chokepoint” areas, such as automotive-grade chips and domain controllers, to concentrate resources on overcoming technological barriers.

Data from 2024 shows that the overseas sales of the three automakers reached 536,000 vehicles, but the overlap rate of their overseas networks is as high as 70%. After the reorganization, the 17 overseas KD (knock-down) factories in regions such as ASEAN and Central and Eastern Europe will be integrated to form an overseas expansion matrix with “one base and one main force.” It is expected that the cost of overseas market development can be reduced by 55%.

Source: AMT     Read The Article

PSR Analysis. The three central state-owned enterprises have made substantial investments in the new energy vehicle (NEV) sector. Although their investment in NEVs is significant, the rate of converting these investments into actual results is not high. This undoubtedly highlights the problems of redundant investment and inefficient competition. Faced with the dual dilemmas of intense domestic competition and global technological competition, strategic reorganization has emerged as a possible solution. Moreover, after the reorganization, the new entity is expected to rank among the top three in global automotive sales. Leveraging economies of scale, it hopes to gain overwhelming advantages in R&D investment and supply chain bargaining power, which could accelerate the transformation of China’s automotive industry to new energy and intelligent vehicles.

This cooperation will involve a comprehensive integration across the entire industry chain, including intelligent driving, battery technology, and hydrogen energy. It will also cover the consolidation of technology platforms, supply chains, and overseas channels. This move could put an end to the internal resource waste caused by “redundant R&D” and focus resources on tackling forward-looking technologies such as chips and high-level intelligent driving.

After the merger, resources will be further tilted towards self-owned brands, and joint-venture automakers may accelerate their exit from the Chinese market. Meanwhile, private enterprises such as BYD and Geely will likely face certain impacts. With the financial and policy support from the central state-owned enterprises, the new group may take the initiative in price wars. Thanks to economies of scale, the cost per vehicle is expected to decrease by 10% to 15%, making consumers the biggest winners.  PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

Baidu and CATL say they will collaborate on unmanned driving and digital intelligence to promote unmanned driving services and industrial AI applications.

The cooperation is expected to leverage the advantages of both companies, including CATL’s battery, swapping, and skateboard chassis technologies for unmanned vehicle development, and to explore competitive products and business models to enhance mobility services.

Baidu will support CATL’s digitalization with its full-stack AI capabilities, spanning chips, platforms, and applications, injecting new energy into the green transition and jointly building a smart energy future.

Source: CATL     Read The Article

PSR Analysis. The collaboration between Baidu and CATL significantly boosts the technical prowess and global competitiveness of China’s new energy vehicle industry. By integrating Baidu’s advanced AI and autonomous driving technologies with CATL’s leading battery, swapping, and skateboard chassis technologies, this partnership elevates the technical standards of Chinese electric vehicles, driving the industry toward higher level development and strengthening market competitiveness.

It also accelerates the popularization of unmanned driving mobility services in China by advancing the application of autonomous driving technology in electric vehicles. Moreover, Baidu’s AI capabilities support CATL’s digital transformation, enhancing R&D and production efficiency in the new energy sector, promoting technological progress, and contributing to China’s green transition and carbon reduction goals.

This cooperation sets a new benchmark for the global electric vehicle market through technological innovation, enhancing China’s influence in the industry and giving it more say in technology R&D and application. It stimulates competitiveness and innovation among global electric vehicle companies, driving market growth. Additionally, the Baidu-CATL collaboration offers a model for the transformation of the global electric vehicle industry, accelerating the integration with emerging technologies like AI and IoT, and steering the industry towards intelligence and networking.

By combining Baidu’s autonomous driving technology with CATL’s battery and chassis technology, the partnership addresses practical technical challenges, accelerating the maturation and commercialization of autonomous driving technology. It explores diverse application scenarios and business models for autonomous driving, promoting service popularization globally.

Furthermore, the cooperation fosters collaboration between tech and automotive firms, forming close industrial alliances to boost the development of the autonomous driving industry.   PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

The Italian superyachts manufacturer Sanlorenzo and Volvo Penta are working to enhance yachting efficiency and sustainability by integrating the Volvo Penta’s IPS Professional Platform into the new SX120 and SX132 superyachts.

As part of its “Road to 2030” strategy, Sanlorenzo, a leading superyacht manufacturer, continues to drive innovation following the 2024 launch of the 50 Steel, the first superyacht powered by a green methanol-to-hydrogen fuel cell.

The IPS Professional Platform is an integrated, modular propulsion system developed by Volvo Penta and has been successfully tested on the 37 meters passenger ferry called Penta 40 in Sweden in 2024. It is designed for commercial vessels and superyachts between 25 and 55+ meters to improve efficiency, sustainability, reliability and comfort on the sea.

The system is based on multiple energy sources, ranging from renewable-fuel combustion engines to fully electric or hybrid options. The intelligent management system optimizes energy use by automatically selecting the most efficient power source based on real-time conditions at sea. The platform’s compact, rear-mounted design maximizes onboard space and comfort. Compared to traditional inboard shafts, it reduces fuel consumption and CO2 emissions by 30%, cuts noise and vibration by 50%, improves power efficiency by 30%, and enhances acceleration by 40%.

The 36-meter Sanlorenzo SX120 and 40-meter Sanlorenzo SX132, featuring this advanced power system, are set to launch in 2025 and 2027, respectively.   PSR

Natasa Mulahalilovic, is Marine Pleasure Boat Analyst-Europe for Power Systems Research